Family firms pay CEOs more, impacting ownership structure and shareholder agreements.
The study looked at how family-owned companies pay their CEOs compared to other companies. They found that family firms tend to pay their CEOs more, especially when the ownership is spread out among many family members. When there is a small difference between who has voting power and who gets the money, CEOs also tend to get paid more. Additionally, having agreements between shareholders can affect how much the CEO gets paid. These effects are stronger in family firms compared to non-family firms.